Off The Record 12-13-02

So, you say you find yourself having too much time on your hands and need to know every single little thing that happens in the world of the PlayStation 2, Sony, and the game makers supporting them? You say you need to have all of the rumors so you can jump to the boards and post the latest news before all of your buddies?

Well, now you've done it. You've located the rumor nerve center at IGNPS2, Off the Record. We know what's happening in the industry before the deals are signed, before the press releases have been written, before you wake your sleepy ass up in the morning. Yes, we have heard it, but at least we admit it. We've got big ears and we know rumors, probably about you, too (and your mom), so just clam up and read. And remember, this is all on the QT, hush-hush, and very Off The Record.

Japanese and American Expansion In a recent phone conversation with a Japanese game executive, IGN learned that the Japanese side of the videogame industry is changing, and it could soon change drastically. Though the Japanese economy is still suffering from a long slump that has yet to see a light at the end of the tunnel, several Japanese publishers are poised to make aggressive moves to expand their operations overseas. Apparently, these moves may happen soon, as soon as this spring. With current rumors circulating around Capcom's possible merger with another company, IGN has learned that several Japanese companies, including Konami, Namco, Sega and possibly Capcom, are looking to either merge with or acquire Western publishers, whether it's from the top or secondary tier.

Strange as it might sound, that means that unlike the Japanese-Japanese merger of Enix and Square, a company such as, say, Konami (this is just a speculative example, not a fact) might try to buy, say, Activision, THQ or Midway. And if a poor performing company stays weak through Christmas and afterward, one of these possible Japanese publishers will be better poised to make a move toward acquisition or merging. Equally possible is the purchase of European publishers, such as Ubi Soft, Infogrames, Titus or Eidos.

A recent Reuters article "European video games makers gear up for alliances" confirms this very notion, but points out similar predatory behavior is happening in the US too. Game publishers Electronic Arts, Activision, THQ and Take-Two are always on the lookout and after the dust settles after Christmas, some major shifts in powers should take place. As development costs rise and the need for several blockbuster franchises within a company grows even stronger in the growing, ever-competitive game market, publishers will continue to look for more content to expand. Unfortunately, we don't have any rock solid news as to which companies are doing what, but we've been innundated with rumors for the last few months. Keep your eyes out for something unusual in the New Year.

Below, you can see for yourself just a few of the merger rumors that have floated our way:

Capcom and (insert Japanese publisher here) : Capcom recently denied any involvement with any acquisitions or mergers, but something is definitely going on. In other words, Capcom is surely looking at ways to increase its market share in Japan, and it isn't ignoring the possibility of acquisitions or mergers.

Microsoft and Sega: How long can one rumor stay afloat? This one remains the biggest, longest and consistent of them all, having lasted for at least two years. And the rumor is still there, so?given the fact that Microsoft has nearly infinite cash and the desire to acquire new publishers/developers, does that mean Microsoft is still searching? We believe so. Sega is primed with an excellent range of games, talent and development power. But it's lost money year after year, including this year. Can it be saved? Is Microsoft the one to do it?

Midway and Sega: Midway executives have long in been in discussions with other companies about possible mergers, and recently Sega officials have spoken with Midway about possibilities. What has become of it? Nothing yet. Wait until after Christmas; if Mortal Kombat and Haven or Dr. Muto do well, who knows? Something very may will happen.

Midway and Sierra: A Sierra executive has gone about buying an eye-opening amount of Midway stock. Why? Perhaps he's betting on the arcade game maker performing well this holiday, or perhaps he's after something bigger. Like all of Midway.

Eidos and Everybody: With Eidos' descent from Lara stardom in the mid-1990s to the role of the few remaining but struggling English publishers, every company mentionable -- Infogrames, Sega, etc.-- has shown some level of interest in it at one time or another. The sales results of TimeSplitters 2 and Hitman 2, along with the result of Tomb Raider: Angel of Darkness will help to define, strengthen or weaken Eidos' value early next spring. So, anything can happen.

Konami and Activision: We know this is a crazy one, and it's all in the past, but we did hear a rumor about Konami's once-fleeting interest in purchasing Activision sometime in the last year and a half. Crazy, sure. But apparently, Konami flush with money, was intent on buying something, and instead of merging or buying Activision, it instead bought a popular Japanese fitness club chain in Japan. Hmm, as we weight these two things in our hands -- Activision, Fitness Club; Activision, Fitness Club -- it's difficult to see how the fitness club won out. But you'll notice how Activision is still independent, right? Right? Riggghhhhtt?

Nintendo and Capcom: Nintendo is certainly up to something, it's essentially said so. Capcom is its closest darling, as was shown in the recent game announcements (What was it? Five exclusive GameCube games?). Whether it's Capcom or somebody else, we're sure to find out soon. But one thing should remain clear, few Japanese companies owned by the founders (Namco, Konami and Capcom, for starters) will sell to another company and give up power while they are still alive. We doubt that Capcom will get bought or merge with another company while its founder is still in power.

Syphon Filter 4, SOCOM Add-on Pack Slated for Fall 2003 Internal sources at Computer Entertainment America have told IGN that the PS2 giant has possible plans to deliver the highly-anticipated fourth iteration of the Syphon Filter series (or else "Project" Syphon Filter, if rumors of Gabe's lessening role prove true in the sequel/non-sequel) to PS2 next fall. The same sources report that an add-on pack to the surprisingly popular SOCOM: US Navy Seals is potentially in the works for next fall 2003 too. This is all good and happy news, though it's hardly surprising.

MBX EA's hush-hush BIG game, a hybrid extreme sport, adventure platforming mountain biking game that's never been announced is still in development, IGN has learned. But it is apparently having a difficult time find the exact angle to take, the right mix of elements, and the right direction, creating a bit a stir as to whether it may come out at all. Naturally, the game hasn't been announced and EA would not comment on its progress.

That's all for now, just remember that we love rumors, and if you hear any really good ones, we'll post them. Sent them to Off The Record.